Good quartely performance of Polska Grupa Farmaceutyczna
In the first quarter of 2006 Polska Grupa Farmaceutyczna improved its EBITDA margin (operational profit plus depreciation to revenues) up to 2.85% (from 2.6% in 2005) and operational profitability up to 2.4% (from 2.18%). This means that the company achieved the best ratios among industry players listed in the stock exchange.
- The profitability of Polish companies still considerably lags behind our Western competitors, as demonstrated by the performance of OPG Group, which is present in Poland and achieved net profitability of 3.6% in 2005. Nonetheless, the results of PGF confirm that the growth strategy we pursue is the right one. With our M&A experiences, which is unparalleled in the industry, we can quickly restructure the entities incorporated into the Group- said Jacek Szwajcowski, the President of PGF’s Management Board.
– On the other hand, the impact of the next stage of the growth path we decided to pursue are becoming increasingly visible. The largest group of affiliated pharmacies that operate under the common brand “APTEKI Dbam o Zdrowie” and over 1.2 households that are members to the program create a potential that allows us to expand our value proposition and differentiate ourselves against competitors – adds Szwajcowski.
In addition, the liabilities of PGF decreased at the end of the fist quarter 2006. The loans and bonds outstanding were reduced by PLN 10.3 million, which allowed us to improve the debt ratios reported at the end of 2005. – The improvement of debt ratios is also driven by very efficient management of working assets, and specifically sound management of our trade receivables portfolio. Also in terms of receivables turnover ratio we achieve the best results in the industry – says Jacek Dauenhauer, Financial Director of PGF.
